albionus on 10 July 2007
Of course Sony can cut the price and be profitable. Take all those PS3's that were built last year and are still sitting on shelves, the loss was taken last year and while sitting on store shelves they earn nothing. Now Sony cuts the price to $500 and presumably those PS3's will sell, instant $500 profit (in this year's terms at least).
More realistically, the initial cost estimates could be including reasearch and development cost and Sony is simply not counting that now. I seriously doubt Sony has made enough selling PS3's to cover cost of production, distribution, and marketing, much less the research and development costs. At any rate, PR is as PR does.
